Table of Contents
Introduction
Key Considerations for Employing in Italy
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in Italy requires compliance with strict labor laws, payroll regulations, and mandatory benefits. Omnipresent’s Employer of Record (EOR) service ensures that businesses meet all local employment obligations in Italy.
2. Key Considerations for Employing in Italy
Currency: Euro (€)
Language: Italian
Employer Costs: High (~30.5% of salary)
Termination Complexity: Very Hard
Onboarding Timeline: Approximately 18 calendar days
Payroll Frequency: Monthly
3. Benefits
Types of Benefits Offered
Mandatory Benefits: Public healthcare, pension contributions, accident insurance, workers’ compensation.
Supplementary Benefits: Private healthcare, vision insurance, travel insurance.
Healthcare
Public healthcare (Servizio Sanitario Nazionale - SSN) is administered at a regional level.
Employers must provide supplementary health insurance based on employment level.
Retirement
National Social Security Institute (INPS) covers retirement, disability, and illness benefits.
Mandatory pension contributions are deducted via payroll.
4. Employment Contracts
Contract Types
Indefinite-term contracts
Fixed-term contracts (limited to 20% of workforce, max 3 years)
Part-time contracts (min 18 hours per week)
Requirements
Written employment contracts are required.
Language: Italian & English (Italian version prevails).
Signature Requirements: Simple electronic signature.
Backdating: Not permitted under Omnipresent’s policy.
Probation Period
Maximum probation period: 6 months for all roles.
Probation allows easier termination before transitioning to standard dismissal procedures.
Contract Customisation
Optional clauses for customization, such as extra-legal sick days or unlimited time off.
Certain elements cannot be customized (e.g., overtime, restrictive covenants).
5. Onboarding
Timeline
The onboarding process in Italy typically takes 18 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Registration & Approvals
Employees must be registered with INPS (Italian Social Security Institute).
Registration takes up to 48 hours and must be completed before the start date.
Immigration & Visas
Omnipresent does not offer visa or work permit sponsorship.
Right-to-Work Verification
Employers must conduct right-to-work (RTW) checks.
Employees must complete a medical check and Health & Safety training within 60 days.
Employee Transfers from Another EOR
Employees can be transferred, but unused leave must be paid out by the previous employer.
6. Leaves
Leave Entitlements
Annual Leave: Minimum 22 working days (excluding public holidays).
Additional paid leave based on seniority:
0-2 years: 32 hours
2-4 years: 78 hours
4+ years: 104 hours
Annual Leave Carryover: Max 10 days, valid for 18 months.
Maternity & Paternity Leave
Maternity Leave: 5 months (80% salary, reimbursed by INPS).
Paternity Leave: 10 days, fully paid by INPS.
Sick Leave
Paid sick leave for up to 180 days per year.
First 3 days: 100% salary from employer.
Day 4 onwards: Paid by INPS (amount varies by sector and service length).
Public Holidays
12 national public holidays, plus one local holiday based on location.
Key holidays include New Year’s Day, Easter Monday, Liberation Day, Republic Day, Christmas, Boxing Day.
7. Payroll & Taxes
Payroll Cycle
Frequency: Monthly
Cut-off Date: 6th of each month*
Payment Date: Last working day of the month.
*Omnipresent supports both 6th and 15th cut-off dates in this country depending on our local partner. While we prioritise local partners with a later cut-off date, local partners with an earlier cut-off date might be chosen because of visa sponsorship ability and other factors. If you would like to switch to a local partner with a later cut-off date, feel free to reach out to your Customer Success Manager or our Support team at help@omnipresent.com.
Compensation
Mandatory 13th- and 14th-month salary payments:
Paid in June and December, or prorated monthly.
No national minimum wage (determined by Collective Bargaining Agreements - CBAs).
Standard Work Schedule
40 hours per week, Monday-Friday.
Employer Costs
Estimated 30.5% of salary. Use the OmniCalculator for a detailed breakdown.
8. Termination Process
Notice Period
Determined by National Collective Bargaining Agreement (NCBA).
Ranges from 15 to 120 days, based on seniority and role.
Termination Grounds
Strict labor protections apply.
Valid termination reasons: Gross misconduct, redundancy, company restructuring.
Severance Pay (TFR - Trattamento di Fine Rapporto)
Employers must set aside 7% of annual salary as an end-of-service allowance.
TFR is paid out upon termination for any reason, including resignation.
9. Invoice Schedule
Initial Fees
Setup Fees: Due upon signing Terms.
Deposit: Payable when the local employment contract is ready for signature.
First Salary Prepayment: Invoiced on the first day of employment.
Ongoing Monthly Payments
Labour costs invoiced monthly in arrears after payroll calculations.
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.